Share this article!

It was a May that was worth forgetting, according to the latest Housing Report that recorded home price growth of only 0.9% year-over-year, the slowest rate since the company began recording this data in 2016.

“April and May are historically popular months to buy, and typically by this time in the year we’ve exceeded the prior year’s peak home price,” observed Danielle Hale, chief economist for “Weakening home price growth for the past 12 months is increasing the odds that we may not see a new home price peak this year, for the first time in the history of our listing data, which dates back to mid-2016, and this is likely welcome news to home shoppers.”

The median list price grew to $441,000 in May, up from $430,000 in April but down by 1.7% from June 2022’s record high of $449,000. Higher mortgage rates and home prices compared to May 2022 increased the monthly cost of financing 80% of the typical home by roughly $296 compared to a year ago.

Among the 50 largest U.S. metros, 15 markets saw their median list price decline, most notably the Texas markets Austin (-7.3% year over year), Houston (-5.9%), and San Antonio (-5.8%). The number of active listings in May was up 21.5% year-over-year but the inventory growth rate continued to slow for the third straight month.

“Despite stalling price growth, home listing prices are up slightly compared to last May, and with rates more than a percentage point higher than a year ago, buyers continue to face affordability headwinds,” Hale said. “The good news for sellers is that buyers are still out there, and this month’s slower growth in the active inventory of homes for sale indicates that shoppers are in the market and actively searching for homes that fit their needs and budget.”